Saturday 25 September 2021
Books – Mustafa Eid:
Reda Abdel-Qader, head of the Egyptian Tax Authority, demanded that individuals who are engaged in content creation activity (bloggers – YouTubers) must go to the office within whose scope the activity headquarters is located (income) to open a tax file to register with the competent income tax mission, to register with the competent value-added mission when its revenues reach 500 thousand pounds within twelve months from the date of practicing the activity.
Abdel Qader said, in a statement today, Saturday, that if there are any inquiries related to e-commerce, the integrated call center is contacted at 16395 or heading to the headquarters of the e-commerce unit at the Egyptian Tax Authority located in Mahmoudia Tower – Maadi Highway – Saqr Quraish _ Ground Floor.
The head of the Tax Authority added that the Ministry of Finance is closely following the Tax Authority to make every effort it has to achieve tax justice by identifying the tax community more accurately, especially the transactions that take place through electronic platforms, and determining who does them, to include the informal economy in the official system, And to claim the rights of the state’s public treasury, pointing to the role played by the e-commerce unit at the authority in listing, following up and registering companies that engage in trade activity through websites.
Abdel Qader pointed out that e-commerce is an updated form of marketing and selling imposed by the changes in communication technology and new communication, and the dependence on it has expanded in an unprecedented way globally due to the Covid 19 pandemic, where the company’s sales officials meet sales requests and undertake marketing and sale Goods and services through a variety of means, such as telephone, fax, television, or over the Internet, noting that many countries describe any business transaction as electronic commerce when the ownership of the goods is transferred (sale) or service is performed over the Internet or by electronic means other
Abdel Qader explained that there are three types of companies that engage in e-commerce activity, the first type of which is companies that consider e-commerce just one of the various means of sale or distribution, and the second type is companies that were established and depend mainly on selling and distributing their products and services through Through electronic means, while the third type is represented by companies whose activity is digital platforms to display the products of sellers, and to facilitate comparison processes for buyers.
Regarding the tax situation of companies that engage in electronic commerce activity, the “Head of the Egyptian Tax Authority” clarified that with regard to income tax, all companies that engage in commercial or non-commercial activities (activities of liberal professions) are subject to income tax according to Law 91 of 2005 and they must register and declare its revenue as of the date of commencement of the activity.
With regard to value-added tax, Abdel Qader said that according to Value Added Tax Law No. 67 of 2016, companies that engage in the activity of selling public goods or performing services in the general category, when their turnover reaches 500,000 pounds annually, must register with value tax. In addition, individuals and companies that provide professional and advisory services must register as of the date of the start of the activity, and collect and supply the value-added tax at the category of 10%, explaining that companies that engage in an activity to sell goods or perform Services from the goods and services of the Schedule must be registered as of the date of the start of the activity, and the collection and remittance of tax in the category corresponding to the commodity sold, or the service performed as stipulated by law.